Student Loan CRM Compliance
Here at Onsite CRM we have implemented a solution that assists with servicing your clients andfacilitates growth by leveraging automation and reducing the “cost” barrier for our student loan customers. This is an exciting and revolutionary platform that will change the way you do business. We are offering more opportunities and forward thinking to reduce issues with coming regulation in the student loan consolidation industry.
The Fear of Regulation
As you may or may not know, student loan consolidation falls under the guidelines and regulations of the debt industry, which was set forth by the CFPB. The Debt Industry falls under what is called a performance model. This model outlines that a customer cannot or will not pay for services until the services are rendered. Therefore, applying this concept to student loan consolidation, it would state that a customer should not be charged until their student loans have been consolidated. Due to the infancy of the industry, the cost and resources required to consolidate student loans, in conjunction with the high default rate within the industry, all of this would lead to tremendous losses to a student loan company. These are the very real fears that are sweeping the industry today since regulation is on the horizon and approaching the industry at a rapid pace.
Here at Onsite CRM we have created a Student Loan CRM that not only enables growth through a streamlined process, automation, reporting, etc. our CRM also has full performance model compliance configured into the platform with a customer service first approach.
Allow us to explain...
We have learned that the performance model states that fees cannot be charged to the client prior to services. By working with partners and their diligent research we have found that funds may in fact be suspended from the client into a savings or escrow account of which are still by definition the client’s monies and therefore this suspending of funds secures payment for your customers and thus allows rendering of services. Fast forward a few days and now we see that services are rendered and proof of the completed consolidation is visible within the CRM. The escrow account currently holding the customers funds is now triggered by the CRM to release the funds to the student loan company. The customer is notified that services have been rendered and payment received. The industry now stays profitable, and the customer is protected from fraudulent servicing companies.
An added value with the Onsite CRM Student Loan CRM is we have financing built into the platform. We are the one and only CRM with built in financing. This presents incredible value to the student loan company using our solution since now rather than charging high fee’s to the customer looking to reduce their student loans of which are already in financial hardship. They now can offer their customer a low monthly payment of which the first payment is not due until after their student loans are consolidated. Therefore, the customer is never out of pocket for more than what they are paying for their student loans for any given month and the student loan company received their payout from the financing company within 48hrs of the customer signing the agreements.
How To Get Started
Visit our student loan specific page by clicking the link below to learn more information and request a no cost demo.
Onsite CRM is NOT an attorney or governing agency. The issues discussed on our blog post are for educational purposes only.
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